Guangdong LED industry set for losses

Updated: 2012-07-10 16:54

By Li Wenfang in Guangzhou (chinadaily.com.cn)

The LED lighting industry of Guangdong province, which accounts for 70 percent of the national output, may suffer more than 4 billion yuan ($628.6 million) in losses with the higher technical standards set by the European Union, the United States, Chile and Uganda.

The WTO/TBT Center of the Administration of Quality and Technology Supervision of Guangdong received TBT, or technical barriers to trade, notices on higher standards for LED lights and directional lights exported to those countries and regions, the center said in a statement on July 9.

The higher efficiency requirements set by the EU would inflate the costs of LED light producers in Guangdong by more than 20 percent, or 2 billion yuan, according to the center.

Meanwhile, the stricter testing requirements set by the US would add more than 2 billion yuan in extra costs to LED firms in the province.

LED light exports from Guangdong were worth more than 34 billion yuan last year, accounting for about 25 percent of the LED light output in the province. Products sold to the US and EU made up two-thirds of the province's LED exports.

The center is urging the countries and regions to accept its comments for lowering the requirements. It is also working with companies to set up a working mechanism against LED technical trade barriers.